Shanshan shares are expected to report a six-fold increase in net profit compared with the same period last year, and the electrolyte business will turn from loss to profit.

After trading on July 14, Shanshan shares (600884) issued a pre-increase announcement, with an estimated net profit of 700 million yuan to 750 million yuan in the first half, an increase of 599% to 649% over the same period last year, and a net profit of 665 million yuan to 715 million yuan after deducting non-recurring profits and losses.

For the substantial growth in performance, Shanshan shares said that the new polarizer business and table brought a greater contribution to performance, and it is expected to achieve a net profit of 490 million yuan to 510 million yuan belonging to shareholders of listed companies. The company has completed the delivery of LCD polarizer business in mainland China on February 1, 2021, and the related assets will be included in the merger scope from February 1, 2021.

In addition, the prosperity of downstream new energy vehicles continued, and the sales of positive and negative materials of Cunninghamia lanceolata shares increased steadily. At the same time, the company continues to give full play to its advantages in integrated production line, intelligent manufacturing and cost control, superimposing the upward fluctuation of some raw material prices, and improving the profitability of positive and negative materials.

Battery Network noted that in the field of cathode materials, Cedar Energy shares ceased to be listed on the new third board from May 24. Prior to this, Shanshan shares announced that BASF intends to buy a 51% stake in Shanshan Energy.

It is reported that Cunninghamia lanceolata Energy operates four production bases for cathode active materials and cathode material precursors in Hunan and Ningxia, and will achieve an annual production capacity of about 90,000 tons in 2022.

In the field of anode materials, recently, the opening ceremony of the 50, 000-ton negative electrode project of Sequoia technology Wulanchabu was held. Shanghai Shanshan also signed a graphite procurement framework agreement with Funeng Technology, which is expected to purchase more than 25000 tons in two years.

In the field of electrolyte, thanks to the rising price of lithium hexafluorophosphate and the production capacity of self-provided lithium hexafluorophosphate, the gross profit margin of Shanshan shares' electrolyte business has been greatly improved, turning losses into profits in the first half of the year compared with the same period last year.